Is Denali Therapeutics, Inc. overvalued or undervalued?

Jun 25 2025 09:10 AM IST
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As of November 6, 2024, Denali Therapeutics, Inc. is overvalued and has deteriorated to a "does not qualify" rating due to negative financial metrics and a year-to-date return of -33.17%, significantly underperforming compared to its peers and the S&P 500.
As of 6 November 2024, Denali Therapeutics, Inc. has moved from a valuation grade of risky to does not qualify, indicating a significant deterioration in its financial health. The company is currently overvalued, with a Price to Book Value of 1.90 and negative ratios such as EV to EBIT at -2.57 and EV to EBITDA at -2.61, reflecting ongoing losses and a lack of profitability.

In comparison to its peers, Denali's valuation metrics are concerning; for instance, Axsome Therapeutics, Inc. has a P/E ratio of -20.23, while Krystal Biotech, Inc. is considered expensive with a P/E of 25.47. The company's recent performance has also lagged behind broader market indices, with a year-to-date return of -33.17% compared to the S&P 500's gain of 2.44%. Overall, Denali Therapeutics appears to be overvalued given its financial indicators and relative position within its industry.
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Our weekly and monthly stock recommendations are here
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